You've heard of the Dogs of the Dow. I introduce to you the Sheep of the S&P. The name fits in more ways than one. You may not know this, but sheep are pretty stupid. The stocks on this list are not doing that great, but being in the S&P they have a lot of shepherds. The first big shepherd is the S&P 500 itself which means that these stocks are pretty well vetted and practically too big to fail. The other shepherds are American 401k contributors and everyone else that buys ETFs. Whenever I make a contribution, a little bit goes to these stocks. So even though they've wandered away from the herd, we all help to bring them back.
This post shows where I'm at with my paper trading account. THIS IS NOT FINANCIAL ADVICE.
It was an incredible quarter for these sheep and I wish that these gains had been real for my sake.
Here's the new list. You may notice that I stopped at 15 stocks because their price to book ratios were getting over 1. There are also 2 REITs in the list now, so I am only putting the other 13 into my paper trading account.
Thanks to all who have read this far. Thanks to all who left upvotes. Feel free to share any input. I would love to see this become a collaborative forum.
I started running and tracking this screen in April 2025 I run the rebalancing quarterly on the day after Renaissance Technologies releases their 13f filing. I would like to backtest this strategy, but haven't found a free way to do it. If any of you would be able to backtest for me, it would be greatly appreciated.